Large Spanish Banks’ RoE in 1H19 Improves, but Limited Upside in Domestic Activities
DBRS published a new commentary analysing the 1H19 domestic results of the largest Spanish banks:• DBRS sees the results from domestic activities as improving for large Spanish banks, supported by higher net interest income, lower loan loss provisions and cost synergies. For these banks, domestic Return on Equity (RoE) is now more in line with their Cost of Equity (CoE).
• However, the current economic environment limits opportunities for further increases in profitability, with cost cutting remaining as the main lever.
• Looking at the entire Spanish Banking System, the situation is more challenging, with the overall RoE clearly lagging behind their CoE.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.